Goods and Services Tax (GST) was introduced in 2017 to unify the structure of various indirect taxes. It was expected to make the process of collecting indirect taxes much more transparent and efficient than the earlier. However, scamsters have identified various ways to fraud the people and it has become essential to have the basic knowledge of verifying the authenticity of GST bills. This article covers how one can prevent GST frauds by simply following the steps the listed below.
Steps to Verify the Authenticity of a GST Bill
1. Verify Goods and Services Tax Identification Number (GSTIN)
To verify the authenticity of a GST bill, begin by checking the supplier’s GSTIN (Goods and Services Tax Identification Number). Every supplier is given a unique 15-digit GSTIN, which consists of the state code, PAN, and a specific registration number. You can confirm the validity of the GSTIN, along with details like taxpayer type, registration date, registration state, legal and trade names of the business, UIN, or GSTIN status on the official GST portal.
2. Check Invoice No.
Checking that the invoice no. and date on the GST bill are correct is the next step in the process. The invoice no. must be unique and should follow a consecutive sequence. Also, the invoice date should match the approved timeframe.
3. Verify Invoice Value and Tax Amount
You must verify the tax amount and invoice value. To check the applicable GST amount- first check the GST rate on the product or service and then visit the GST website to calculate the total GST applied on the invoice value.
4. Check Supplier’s Signature
The GST bill needs to contain the supplier’s signature or in some cases the signature of their representative. This signature should match the signature which is registered with the GST authorities. You can check the same on GST website.
5. Check Tax Payment Status
Finally, check the supplier’s tax payment status on the GST portal. If the tax for the invoice has been paid, it will be reflected in the GST return filed on the portal.
Conclusion
These easy steps to verify the authenticity of your GST bill could help you avoid a fraud or scam with ease. It is crucial to know the steps to verify your GST bills. If you encounter any fraudulent activites you must report the same to the authorities so that further frauds of the same nature could be avoided.